:: George Angell

Widely respected day trading guru George has some interesting trading ideas

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George Angell is most famous for two trading strategies - his 'LSS' Method (which is based on George Douglas Taylor's Book Method), and his 'sniper trading' day trading system. The LSS method is, as Angell describes it, a day trading system, revolving around identifying a 3 day pattern in the markets. In summary, Taylor claimed the market was taken lower to create buying opportunities for market insiders or taken higher to create selling opportunities for these same insiders. Whether or not there is any merit in these claims is for you to decide, although Angell does appear to have had some success with it.

The 3 day cycle in the LSS method consists of:-

• A buy day, or "L" day, (the market is taken lower on the open, providing an opportunity for insiders to purchase contracts at good prices).
• A sell day, or "S" day, (the market would trade at or near the previous day's high, giving those same insiders an opportunity to sell at a profit the positions they took during the prior day's session)
• A short sell, or "SS" day, (the market opens at an extreme, giving the insiders a short selling opportunity - shorting contracts that could be covered lower at the end of the day).

George Angell's 3 day cycle can sometimes be prolonged into 4 or even 5 days, depending on how well the uninformed majority of traders take the bait offered by the insiders. To identify the cycle, lets take a look at an ideal pattern:-

• Buy Day - low made first which is then followed by a rally
• Sell Day - market meanders at or near the previous day's high
• Short Sell Day - high made first followed by a sharp decline

If you are expecting a 'short sell day' and a low is made first, you reverse, expecting instead a sharp rise. As a basic trading idea it seems quite interesting, although anything based on cycles is bound to become less relevant as time goes by.

Angell's second contribution is his 'sniper trading' idea, simply put, during the day, rallies or declines tend to go in two 'legs'. If you spot a sharp rise up, for example, followed by a plateau or small decline, you should expect a second sharp rise up of about the same magnitude and duration as the first. If the plateau/decline falls below 60% of the first rise, the second leg probably isn't coming. The reverse applies to the first leg being a sharp fall. This pattern can be seen often in the markets, although the probability of the second leg being up is about the same as that of it being down, so this is potentially a dangerous trading strategy.

As a day trader, George Angell's style is basically an old-fashioned version of:-

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